CONTENTS

The National Council will convene on September 14 and 15 to continue
the discussion on the course of the ongoing UN-led direct talks between
the leaders of the two communities in Cyprus to find a political
settlement and on the progress report on Turkey`s EU accession course.

Speaking after Friday`s meeting of the National Council, Government
Spokesman Stephanos Stephanou said President of the Republic Demetris
Christofias briefed the members of the Council in detail on the course
of the talks, based on documents submitted, adding that in September
the members will be presenting their views.

The National Council is the top advisory body to the President on the
handling of the Cyprus problem, and comprises leaders and
representatives of parliamentary parties.

Replying to questions, Stephanou said all political parties submitted
positions and views on Turkey`s EU accession course, verbally or in
writing.

``Today there was a truly constructive atmosphere,`` he said, adding
that discussions to follow ``will deal with what needs to be done and
how it should be done, so that through Turkey`s accession course, the
effort to solve the Cyprus problem is assisted.``

Stephanou clarified that Turkey`s progress report and talks to solve
the Cyprus problem are two separate matters, adding that the Greek
Cypriot side would be striving for a settlement through the
negotiations, despite obstacles.

Cyprus, which joined the EU in 2004, has been divided since 1974, when
Turkey invaded and occupied its northern third.

The leaders of the two communities in Cyprus have been engaged in
UN-led direct negotiations since September 2008, with an aim to reunite
the island.

Greeces firm goal is to end Turkeys military occupation of Cyprus
northern part and find a solution to the problem, based on
international law and UN resolutions, Karolos Papoulias, President of
the Hellenic Republic, has stressed.

Addressing an event to mark the 35th anniversary since the restoration
of democracy in Greece, Papoulias said that the solution of the Cyprus
problem should be based on international law, UN resolutions, and
should free the island of the right of intervention by foreign powers.

He also pointed out that neither arbitration nor strict timeframes
should be imposed on the current UN-led direct negotiations between the
leaders of the two communities in Cyprus.

The European Union has a responsibility to contribute to the ``healing
of this wound, which is one of the greatest shames of global
civilisation``, he said.

A meeting at the Ministry of Finance with the leaders of parliamentary
parties examined ways to increase public revenue without imposing
taxes.

Minister of Finance Charilaos Stavrakis said the main aim of the
government was to maintain public deficit below 3%, given the reduction
in the state`s income, as well as the measures to tackle the global
financial crisis, with simultaneous low taxation and the continuation
of the government`s social programme.

Stavrakis said there was certainly a deterioration in public finances,
mainly due to the decrease of state revenue from property sales, adding
that in 2008 this sector contributed 700 million EUR to public
finances, while in 2009 it is expected that revenue would drop to less
than half that amount.

``The government is doing everything possible to maintain public
deficit on the lowest possible level,`` he said.